Description
NSE Clearing Limited revises margin categories and applicable minimum initial margin, MPOR, and VSR percentages for commodities in the derivatives segment, effective April 01, 2026.
Summary
NSE Clearing Limited (NCL) has revised the margin framework for the Commodity Derivatives Segment via Circular Ref. No. 098/2026 (Download Ref No: NCL/COM/73188), effective April 01, 2026. This circular modifies the earlier circular no. 0274/2025 dated September 05, 2025, and aligns with SEBI circulars dated January 27, 2020, and January 11, 2021, on the Review of Margin Framework and Volatility Scan Range (VSR) for commodity derivatives.
Key Points
- Commodities are categorised as Low, Medium, or High volatility for the purpose of determining margin requirements.
- Minimum Initial Margin (IM) ranges from 6% (Low) to 10% (High); not to be scaled up by MPOR.
- Minimum MPOR is 2 days for Low/Medium and 3 days for High volatility categories.
- Minimum VSR ranges from 5% (Medium) to 6% (High) where options are available.
- Special higher margins remain in force for Crude Oil (33% IM/SOMM/VSR), Natural Gas (13%/13%/6%), and Silver (11.50%/11.50%/6%) per earlier NCL circulars.
- All other margins (Extreme Loss Margin, ICMTM, Tender Period, Delivery Period, Concentration, Additional, and Special Margin) continue unchanged.
- For options on goods, MPOR shall be at least three days or the MPOR of corresponding futures, whichever is higher.
Regulatory Changes
| Commodity | Type | Volatility Category | Min IM % | Option Min Margin % | Min MPOR | Min VSR % |
|---|---|---|---|---|---|---|
| GOLD | Non-Agri | Medium | 8 | 8 | 2 | 5 |
| LEAD | Non-Agri | Low | 6 | N.A. | 2 | N.A. |
| COPPER | Non-Agri | Medium | 8 | 8 | 2 | 5 |
| ALUMINIUM | Non-Agri | Medium | 8 | N.A. | 2 | N.A. |
| SILVER | Non-Agri | High | 10 | 10 | 3 | 6 |
| NATURALGAS | Non-Agri | High | 10 | 10 | 3 | 6 |
| CRUDEOIL | Non-Agri | High | 10 | 10 | 3 | 6 |
| NICKEL | Non-Agri | High | 10 | N.A. | 3 | N.A. |
| ZINC | Non-Agri | Medium | 8 | 8 | 2 | 5 |
| ELECMBL | Non-Agri | High | 10 | N.A. | 3 | N.A. |
Note: Special higher margins apply to Crude Oil (33%), Natural Gas (13%/13%/6%), and Silver (11.50%/11.50%/6%) per separate NCL circulars.
Compliance Requirements
- All members of the Commodity Derivatives Segment must update their internal margin and risk systems to reflect the revised framework before April 01, 2026.
- Members must ensure adequate collateral and margin collection from clients consistent with the revised minimum IM percentages.
- For options on goods, members must apply the higher of three days or the futures MPOR when computing option margins.
- All other applicable margins must continue to be levied without change.
Important Dates
- March 09, 2026: Circular issuance date.
- April 01, 2026: Effective date — provisions applicable from the beginning of day.
Impact Assessment
This circular has a high operational and financial impact on members trading commodity derivatives on NSE. The revised volatility categorisation and associated margin parameters directly affect the collateral requirements for positions in Gold, Silver, Crude Oil, Natural Gas, Copper, Zinc, Lead, Aluminium, Nickel, and ELECMBL. Members with large open positions in High-volatility commodities such as Crude Oil and Natural Gas — which carry even higher special margins of 33% and 13% respectively — need to plan for potentially significant margin calls. Risk teams and back-office systems must be updated well before April 01, 2026, to avoid margin shortfalls or automated position liquidations.
Impact Justification
Affects margin requirements across all major commodity derivatives contracts traded on NSE; members must update risk and collateral systems before April 01, 2026.